Deciding whether to rent or buy a home is an important decision. Since there is so much to take into consideration it is best to have all of the facts to make an informed decision.
When you rent you have to look at it from a monetary standpoint, as well as from other aspects. First, consider the money. Every time you pay rent you are paying off someone else’s home. Renters are paying each month for a place to live- period. There is no investment of their money, nor does it give them anything in return except a roof over their head. There is no need to make improvements since you don’t own the property.
Renters have to live by the rules of the landlord. Any changes have to be accepted or you’re forced to move out. Repairs are at the convenience of the landlord, too. And any suggestions for making the living conditions better have to get approval.
Other considerations include privacy. Renting means you do not always get to pick your neighbors. You automatically get the neighbors and their bad habits. Plus, chances are that other renters surround you. That means temporary residents that do not hold the same respect and care for their property as if they owned it.
When you own a home you have freedom. You can improve the yard or the structure itself since it is an investment. When looking for a home if you don’t like a neighborhood you can move on to another one. Being surrounded by homeowners means they value their investment, too, and are much more willing to protect it. That keeps the values in the neighborhood up.
When you purchase you have a required monthly payment. But there is always the option of paying extra each month in order to pay the home off faster. That means saving on interest. And every dollar you pay off on your home is an investment for when you sell.
As the housing market increases so do the values of a home. Each year that the value goes up means an increase in your investment. Some areas can go up dramatically in value. Plus, if you got the home for a good deal you might be able to make some improvements to increase the value. Even updating a room has the potential to pay off. Increasing the value means more money in your pocket.
Owning a home means you are in charge. If you get a good job offer that requires relocating you can either sell your home and pocket the difference, or there is always the option of renting it out and letting a renter pay down your home.
Don’t forget the taxes. Every year that you pay on your mortgage allows you to take the interest of those payments off of your taxes. That can add up to a significant amount each year.